Credit crunch affecting student loans - how we can help
This subprime mortgage meltdown is affecting everything*, including credit card loans, auto loans, and even student loans. Any type of loan basically is getting tightened because there is lack of liquidity in market. I heard on NPR that government backed student loans are not really affected, but who knows what will happen. The government has to borrow, too, from SOMEWHERE. Guess where. *duh*
Apparently this problem is most pervasive for students attending for-profit schools. (But aren’t all schools for-profit? They just don’t do dividend distribution.) Regardless, those of us who have benefitted from receiving student loans and have attended college have a civic responsibility to help. How? Simple. Just pay back your student loans if your cash is rotting away in savings or checking. If you make over $40k, your interest payment deduction benefit doesn’t even exist. So why not get rid of your debt AND help some other kid who needs a college education?
My two cents.
*Note: Situation’s so bad that even the entire city of Vallejo, CA is going bankrupt. Civil servants like fire and policemen are not coming to work b/c they think they might not get paid. Two thoughts arise out of this
- If a cop or fireman tells you that he’s doing the job because of passion, ask him if he’s willing to work for free
- I wonder if you can buy a city government. What wouldn’t I give to be King Kong..
